Recent problems with a Sonos app update unleashed a wave of criticism that the audio speaker maker couldn’t recover from, leading to a major overhaul that saw its former CEO, Patrick Spence, forced to resign. With the company’s valuation now down to $1.7 billion, down from $5 billion during the pandemic, is Sonos in a position where it has no choice but to be acquired?

The possibility is always there, and for a long time, Apple was reported to be the entity most likely to absorb its assets. However, according to the latest reports, this did not happen. The Cupertino company also has its products in the right place, but there are other companies that could benefit from acquiring Sonos.

Amazon, Samsung, and Spotify are the most likely candidates to acquire Sonos, as Apple already has the resources necessary to jumpstart its audio business.

With the acquisition of Beats, Apple not only continues to produce wireless audio products that are taking the world by storm, but also launched a smart speaker that allows the company to enter a new product category. Of course, these devices could have done better sales, but that’s not a reason to acquire Sonos.

However, Bloomberg’s Mark Gurman has mentioned in his latest newsletter ‘Power On’ that the California-based giant has all the desired resources from hardware, software, manufacturing and more. Now, all that is needed is to ensure that these parts move in unison and ensure that Apple succeeds in executing this field.

“If Apple really wanted to build its home audio business, it would already have the hardware, software, content, and manufacturing parts in-house. It’s just about wanting to get things done right — something Apple is working on. Later this year, they will launch their own home hub and a new HomePod mini.”

So if not Apple then who? The report says that Meta, Google, and Microsoft are unlikely to want to acquire Sonos, but Amazon, Samsung, and Spotify may be possible candidates. Amazon appears to be the most appropriate as the e-commerce giant is reportedly looking to overhaul its device portfolio, and the acquisition of Sonos could provide the backbone for introducing new Echo products in the future.

However, Amazon may be patient in taking action as analysts project Sonos will report a 15 percent drop in revenue during the holiday quarter. The ‘broken’ app update may have damaged the company’s reputation and Amazon could be waiting for a good opportunity to acquire the company at a lower valuation.

News Source: Bloomberg